HomeQuest Bloghttp://www.hqworksforme.com/mortgage-blog/RSS feeds for 60http://www.hqworksforme.com/mortgage-blog/bid/70329/Worst-Week-for-Mortgage-Rates-since-August-2013#Comments1Worst Week for Mortgage Rates since August 2013http://www.hqworksforme.com/mortgage-blog/bid/70329/Worst-Week-for-Mortgage-Rates-since-August-2013<p><b>Mortgage rates rose sharply </b>for the third time this week, bringing them to levels not seen since January 15th.&nbsp; Today's move followed a stronger-than-expected Employment Situation report.&nbsp; This is the most significant economic report each month and when it's strong, rates tend to suffer.&nbsp; Today was no exception as job creation moved back in line with recent averages, defying the expectation that the historically harsh winter weather would make for downbeat data.</p>
<p>Moreover, the report still managed to offer a fairly profound commentary on the <b>effects of winter weather</b> as more than 6 million workers reported missing work last month due to weather.&nbsp; Compared to an average of 70k workers each February who miss a complete week of work due to the weather, today's data showed far more of an effect with 120k workers missing a full week.&nbsp; Had the numbers been more in line with the 70k average, it would have made for an even stronger read on job creation. &nbsp;</p>
<p>Bond markets reacted accordingly.&nbsp; MBS, the "mortgage-backed-securities" that most directly affect mortgage rates, fell immediately to their lowest levels of the week.&nbsp; They managed to improve slightly throughout the course of the day, but only a few lenders released improved rate sheets mid-day.&nbsp; The net effect is a <b>firm move to 4.5%</b> as the most prevalently quoted conforming 30yr Fixed rate for the best-qualified borrowers.&nbsp; When adjusted for day-to-day changes in closing costs, rates moved higher by an equivalent of 0.05% today, making for a .20% move on the week--the <b>worst since August</b>.</p>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/70329/Worst-Week-for-Mortgage-Rates-since-August-2013&bvt=rss">John MartinMon, 10 Mar 2014 12:35:00 GMTf1397696-738c-4295-afcd-943feb885714:70329http://www.hqworksforme.com/mortgage-blog/bid/70284/Mortgage-Rates-Hold-Steady#Comments1Mortgage Rates Hold Steady http://www.hqworksforme.com/mortgage-blog/bid/70284/Mortgage-Rates-Hold-Steady<div class="BlogPostSubject" style="padding: 8px 0px;">Mortgage Rates Hold Stead After Weaker Economic Data</div>
<div class="BlogArticleDateline">Mar 5 2014, 4:07PM&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</div>
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<p><b><a href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</a> held steady </b>today, on average, though some lenders are still in slightly worse shape.&nbsp; Weakness in the markets that affect mortgage rates carried over from yesterday and was poised to push rates even higher today, but weaker economic data helped balance the outlook, ultimately keeping the average rate sheet right where it was yesterday afternoon.&nbsp; The most prevalently quoted conforming 30yr Fixed rate for the best-qualified borrowers (<b><b><a href="http://www.mortgagenewsdaily.com/consumer_rates/259880.aspx">best-execution</a></b></b>) <b>remains at 4.375%</b> depending on the lender and scenario.&nbsp; Some lenders are closer to 4.5% while fewer still may be offering 4.25%.&nbsp; When adjusted for day-to-day changes in closing costs, rates moved higher by an equivalent of 0.00% today, but keep in mind that's an average of multiple lenders.&nbsp; Individual lenders may be just slightly higher or lower.</p>
<p>For a second day, Ukraine-related tensions were cooler as far as markets were concerned.&nbsp; The lower the level of geopolitical <b>drama</b>, the worse the implication is for domestic interest rates (because the turmoil fueled some 'safe-haven' demand for US Bond Markets, which spilled over into mortgage-backed-securities, and higher demand = lower rates, all things being equal).&nbsp;</p>
<p>That absence of drama started the day off poorly for mortgage markets, but domestic economic data turned things around, albeit gradually.&nbsp; Both of today's key economic releases--ADP Employment and the ISM Non-Manufacturing Index--were markedly weaker than expected.&nbsp; Weak economic data tends to promote strength in bond markets, leading to lower interest rates.&nbsp; That said, today's strength <b>wasn't given much room</b> to run as it had to be balanced against the aforementioned weakness due to diminishing Ukraine-related headlines.&nbsp;</p>
<p>It continues to be the case that rates are approaching Friday's important jobs data from more neutral territory, and the <b>risk remains</b> that some weakness in the data could be discounted due to the unseasonably snowy/cold weather.&nbsp; That means if the report manages to beat expectations, rates likely won't think twice about moving higher.</p>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/70284/Mortgage-Rates-Hold-Steady&bvt=rss">John MartinThu, 06 Mar 2014 16:03:00 GMTf1397696-738c-4295-afcd-943feb885714:70284http://www.hqworksforme.com/mortgage-blog/bid/70208/Mortgage-rates-improve-to-best-in-two-weeks#Comments1Mortgage rates improve to best in two weekshttp://www.hqworksforme.com/mortgage-blog/bid/70208/Mortgage-rates-improve-to-best-in-two-weeks<p><b><a href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage</a> rates improved</b>&nbsp;Thursday, February 27th and are now getting close to early February's levels, which were the lowest since November 2013.&nbsp; Much of the positivity may owe itself to temporary factors including geopolitical turmoil and month-end trading dynamics in the bond markets that most directly inform mortgage rates.&nbsp; After moving down to 4.375% yesterday, today's most-prevalently quoted rate for the best scenarios remains unchanged, but closing costs will be slightly lower.&nbsp; When adjusted for changes in closing cost, rates would be down 0.03% on average.</p>
<p>If you are in the market for a purchase or refinance, now might be the time to lock in and take advantage of these pricing opportunities.&nbsp;</p>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/70208/Mortgage-rates-improve-to-best-in-two-weeks&bvt=rss">John MartinFri, 28 Feb 2014 15:00:00 GMTf1397696-738c-4295-afcd-943feb885714:70208http://www.hqworksforme.com/mortgage-blog/bid/70144/Mortgage-Rates-Improve#Comments2Mortgage Rates Improve http://www.hqworksforme.com/mortgage-blog/bid/70144/Mortgage-Rates-Improve<div class="BlogPostSubject" style="padding: 8px 0px;">Mortgage Rates Improve&nbsp;</div>
<div class="BlogArticleDateline">Feb 25 2014, 4:28PM</div>
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<p><b><a href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</a> fell noticeably</b> today, after being pushed up against the highest levels in nearly a month yesterday.&nbsp; In that sense, the positivity in the underlying markets allowed rates to breathe a sigh of relief, quickly returning to levels in line with last Tuesday's.&nbsp; When adjusted for changes in closing costs, the improvement was as much as 0.08% in some cases.&nbsp; Some borrowers may experience that in the form of significantly lower closing costs (no change in rate) while others may see an eighth of a point lower in rate for the same (or slightly higher) closing costs.&nbsp; After today, we're much closer to 4.375% being the most prevalently quoted 30yr <a class="FAtxtL" id="FALINK_2_0_1" href="http://www.mortgagenewsdaily.com/consumer_rates/345672.aspx#">fixed rate</a>&nbsp; for the very best borrower scenarios (<b><b><a href="http://www.mortgagenewsdaily.com/consumer_rates/259880.aspx">best-execution</a></b></b>), though 4.5% shares much of that spotlight.</p>
<p>Keep in mind that the concept of "mortgage rates" involves both that upfront component and the interest rate itself.&nbsp; On most days, markets don't move enough for the actual interest rate to be change (mortgage rates tend to be offered in .125% increments, meaning it would take a lot of movement for a quoted rate to change while closing costs remain level). &nbsp;&nbsp;</p>
<p>While rates rarely move that much in one day (for instance, today was a bigger move, but was only 0.080 compared to the .125 gap between published rates), markets and <a class="FAtxtL" id="FALINK_3_0_2" href="http://www.mortgagenewsdaily.com/consumer_rates/345672.aspx#">loan</a> pricing are still constantly moving.&nbsp; Smaller changes are made possible by the upfront cost component.&nbsp; For instance, today's improvement equates to roughly one third of one percent of the loan amount.&nbsp; So for every $100k financed, the benefit of today's drop in rates would be $300 in upfront cost on average.&nbsp; Again, some scenarios will be better served by moving to the next lower rate and adjusting closing costs while others will prefer to keep the same rate and pay less up front.&nbsp; In almost all cases, you should have the option to choose between the two (lowering the upfront cost, or lower the rate).</p>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/70144/Mortgage-Rates-Improve&bvt=rss">John MartinWed, 26 Feb 2014 01:47:00 GMTf1397696-738c-4295-afcd-943feb885714:70144http://www.hqworksforme.com/mortgage-blog/bid/69376/Mortgage-Rates-Edge-Higher-as-New-Year-Begins#Comments1Mortgage Rates Edge Higher as New Year Beginshttp://www.hqworksforme.com/mortgage-blog/bid/69376/Mortgage-Rates-Edge-Higher-as-New-Year-Begins<p>Freddie Mac&nbsp;has released the results of its&nbsp;Primary Mortgage Market Survey, showing average fixed-rate mortgages (FRMs)&nbsp;continuing to edge higher as 2014 begins, with the 30 Year&nbsp;Fixed Rate&nbsp;averaging&nbsp;4.53 percent with an average 0.8 point for the week ending&nbsp;Jan. 2, 2014, up from last week when it averaged 4.48 percent. A year ago at this time, the 30-year FRM averaged 3.34 percent. &nbsp;The 15 Year Fixed Rate FRM&nbsp;this week averaged 3.55 percent with an average 0.7 point, up from last week when it averaged 3.52 percent. A year ago at this time, the 15-year FRM averaged 2.64 percent.&nbsp;</p>
<p>"Mortgage rates edged up to begin the year on signs of a stronger economic recovery," said&nbsp;Frank Nothaft, vice president and chief economist, Freddie Mac. "The&nbsp;pending home sales index&nbsp;inched up 0.2 percent in November, after five consecutive months of decline. The Conference Board reported that&nbsp;confidence&nbsp;among consumers rose in December and the S&amp;P/Case-Shiller&nbsp;20-city composite&nbsp;house price index&nbsp;rose 13.6 percent over the 12-months ending in October 2013."</p>
<p>The five-year Treasury-indexed hybrid adjustable-rate mortgage&nbsp;(ARM) averaged 3.05 percent this week with an average 0.4 point, up from last week when it averaged 3.00 percent. A year ago, the five-year ARM averaged 2.71 percent. The one-year Treasury-indexed ARM&nbsp;averaged 2.56 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the one-year ARM averaged 2.57 percent.&nbsp;</p>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/69376/Mortgage-Rates-Edge-Higher-as-New-Year-Begins&bvt=rss">John MartinTue, 07 Jan 2014 15:15:00 GMTf1397696-738c-4295-afcd-943feb885714:69376http://www.hqworksforme.com/mortgage-blog/bid/68239/Mortgage-Rates-Stay-Flat-to-Begin-Busy-Week#Comments1Mortgage Rates Stay Flat to Begin Busy Weekhttp://www.hqworksforme.com/mortgage-blog/bid/68239/Mortgage-Rates-Stay-Flat-to-Begin-Busy-Week<p><b><a href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</a></b> <b>stayed in line </b>with recent 4-month lows today.&nbsp; In some cases, there was a slight movement in the closing costs associated with prevailing rates, but the rates themselves didn't change.&nbsp; The most prevalent Conforming <b>30yr fixed quote&nbsp;</b><b><b>(<a href="http://www.mortgagenewsdaily.com/consumer_rates/259880.aspx">best-execution</a>) remained at 4.125%</b></b>.</p>
<p>Every day since last week's jobs report has been relatively calm for mortgage rates.&nbsp; Even then, there was reason to believe that we could be lacking some direction until the next major round of economic data came in.&nbsp; That culminates in next week's jobs report (which is occurring so close to the previous report due to shutdown-related rescheduling), but the current week can certainly play a role.&nbsp;</p>
<p>Economic data is an important factor in mortgage rate movement for 2 primary reasons.&nbsp; <b>First</b>, there's the basic deductive logic that a stronger economy can support higher interest rates, thus stronger economic data tends to push rates higher, all other things being equal.&nbsp;</p>
<p>The <b>second reason </b>has to do with the Federal Reserve's current role in bond markets.&nbsp; While market participants no longer expect the Fed to reduce asset purchases soon, the longer-term assessment of Fed policy still affects rates.&nbsp; If markets think the Fed will continue to push back the eventual end of their buying program, it gives rates more room to stay or move lower.</p>
<p>These two factors both suggest the same movement in the same circumstance, i.e. weaker data suggests lower rates and stronger data suggests higher rates.&nbsp; But as far as the Fed policy component is concerned, some of the economic data is <b>significantly more important</b> than others--namely the big jobs report next week.&nbsp;</p>
<p>That's not to say that the other data can't have an impact, but it has to be fairly unified in its suggestion or the report has to be one of the more important ones.&nbsp; Tomorrow's Retail Sales data is a good example of a non-employment-related report that has the power to move markets.&nbsp; It's joined by several other reports that together, stand a much better chance to ensure we don't end tomorrow in relatively unchanged territory for a 5th straight day.</p>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/68239/Mortgage-Rates-Stay-Flat-to-Begin-Busy-Week&bvt=rss">John MartinTue, 29 Oct 2013 12:50:00 GMTf1397696-738c-4295-afcd-943feb885714:68239http://www.hqworksforme.com/mortgage-blog/bid/68042/Mortgage-Rates-Improve#Comments1Mortgage Rates Improvehttp://www.hqworksforme.com/mortgage-blog/bid/68042/Mortgage-Rates-Improve<div class="BlogPostSubject" style="padding: 8px 0px;">Mortgage Rates Improve after Deal passes</div>
<div class="BlogArticleDateline"><strong>Mortgage Rates </strong>improved slightly today<b>,</b> recovering from yesterday's losses on average.&nbsp;</div>
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<p>The promise of an end to the government shutdown took center stage today, helping both stocks and bonds improve vs yesterday.&nbsp; The full effects of a finalized deal won't be known until tomorrow, assuming the House and Senate pass the legislation tonight, as expected.&nbsp;</p>
<p>From a market-watching standpoint it's <b>important to keep in mind</b> that the reason we're seeing an unexpectedly positive reaction to the debt deal in the world of longer term interest rates has much to do with the fact that we had been seeing an unexpectedly negative reaction to the overall fiscal drama as October progressed.&nbsp; Past examples of similar drama suggest that it's usually over-credited as a motivation for longer term rates (like mortgages) when other factors remain more important.&nbsp;</p>
<p>That's not to say that the drama seen so far and the headlines today aren't capable of causing volatility for interest rates, simply that the volatility is likely to be a "wash" when all is said and done.&nbsp; At that point, the expected source of inspiration remains, as ever, the big jobs report that had been scheduled for October 4th.&nbsp;</p>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/68042/Mortgage-Rates-Improve&bvt=rss">John MartinThu, 17 Oct 2013 15:46:00 GMTf1397696-738c-4295-afcd-943feb885714:68042http://www.hqworksforme.com/mortgage-blog/bid/68015/Mortgage-Rates-Rise-to-3-week-Highs#Comments0Mortgage Rates Rise to 3-week Highshttp://www.hqworksforme.com/mortgage-blog/bid/68015/Mortgage-Rates-Rise-to-3-week-Highs<div class="BlogPostSubject" style="padding: 8px 0px;">Mortgage Rates Rise to 3-Week Highs</div>
<div class="BlogArticleDateline"><b><a href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</a></b> <b>rose moderately </b>today, bringing them to their highest levels since September 23rd.&nbsp; Though the recent move higher has happened very gradually, it's also been fairly determined with none of the past five sessions seeing a move lower.&nbsp; Today's incremental dose of weakness was notable in that it was finally enough to unequivocally nudge <b><b>30yr fixed <a href="http://www.mortgagenewsdaily.com/consumer_rates/259880.aspx">best-execution</a></b></b> back up to 4.375%, though buying down to 4.25% continues to make sense for some scenarios depending on personal preference.</div>
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<p>Last week, we'd increasingly noted that rates had no incentive to move any lower without market participants getting their hands on the important Employment Situation Report--the most important piece of economic data each month and recently postponed due to the shutdown.&nbsp; Despite the lack of motivation to move lower, rates held their ground fairly well--remaining in a new range that was distinctly separate from that which characterizes most of the July-September time frame.</p>
<p>At current levels, we're beginning to blur the lines between these two zones of recent rate levels.&nbsp; The outlook will remain blurry until the shutdown ends and the important economic data is flowing again.&nbsp; It continues to be the case that we can't expect a meaningful move lower without a downbeat jobs report.</p>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/68015/Mortgage-Rates-Rise-to-3-week-Highs&bvt=rss">John MartinWed, 16 Oct 2013 12:51:00 GMTf1397696-738c-4295-afcd-943feb885714:68015http://www.hqworksforme.com/mortgage-blog/bid/67668/Mortgage-Rates-Rise-1st-Time-in-Nearly-3-Weeks#Comments1Mortgage Rates Rise; 1st Time in Nearly 3 Weekshttp://www.hqworksforme.com/mortgage-blog/bid/67668/Mortgage-Rates-Rise-1st-Time-in-Nearly-3-Weeks<div class="BlogPostSubject" style="padding: 8px 0px;">Mortgage rates rose slightly today<b>&nbsp;</b>for the first time in 3 weeks.&nbsp; The difference in rate sheets compared to Friday's latest was minimal, and some lenders were actually slightly better today.&nbsp; Despite the minimal rise, this technically ends an impressive streak of 13 straight days without moving higher.&nbsp; The average 30yr fixed rate was 4.75% when the streak began and now stands at <b>4.25% (<b><a href="http://www.mortgagenewsdaily.com/consumer_rates/259880.aspx">best-execution</a></b>)</b>&nbsp; for conforming, 30yr Fixed loans. &nbsp;With the exception of Friday, today's rate sheets are the best since June 19th for most lenders.</div>
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<p>Financial markets began the week increasingly enthralled by the 'Government Shutdown' debate, though that's still not much at all compared to mainstream media.&nbsp; Even within financial markets, the 'fixed-income' sector containing the Mortgage-Backed-Securities that most directly affect mortgage rates was much less interested in political developments than the stock market.&nbsp;</p>
<p>Rather than give the impression of being overly concerned by a potential shutdown, rates continue to suggest they're waiting for input from important economic data in order to adjust expectations about Fed policy at the end of the month.&nbsp; The most important event to take in will be the jobs report currently scheduled for Friday, though if a government shutdown isn't averted tonight, that report may be delayed indefinitely (because it's published by the Bureau of Labor Statistics--a government office).</p>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/67668/Mortgage-Rates-Rise-1st-Time-in-Nearly-3-Weeks&bvt=rss">John MartinTue, 01 Oct 2013 13:14:00 GMTf1397696-738c-4295-afcd-943feb885714:67668http://www.hqworksforme.com/mortgage-blog/bid/67567/Mortgage-Rates-Winning-Streak-Continues#Comments0Mortgage Rates' Winning Streak Continueshttp://www.hqworksforme.com/mortgage-blog/bid/67567/Mortgage-Rates-Winning-Streak-Continues<div class="BlogPostSubject" style="padding: 8px 0px;">Mortgage Rates' Winning Streak Continues</div>
<div class="BlogArticleDateline"><b><a href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</a></b> <b>fell to new 3-Month lows today.&nbsp; </b>That makes this the 11th straight day where rates have held steady or moved lower.&nbsp; Conforming, 30yr Fixed rates remained at <b>4.375%</b>&nbsp;for most lenders with the improvements coming in the form of lower closing costs or higher lender credit.&nbsp; Some lenders are efficiently priced at 4.25% as well.&nbsp;&nbsp;<b></b></div>
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<p>As we noted yesterday, the burden of proof is on the scheduled economic data when it comes to determining whether or not the Fed is likely to move back toward its previous stance on tapering.&nbsp; In simpler terms, if the data says the economy isn't improving enough, the Fed is justified in continuing to hold off.&nbsp; As long as they hold off, interest rates benefit in general.&nbsp;&nbsp; This was generally the case today as the economic data was roughly in line with expectations.&nbsp; Tomorrow is another chance for the same thing to happen, but be aware that if the data is stronger than expected, rates will likely move higher.</p>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/67567/Mortgage-Rates-Winning-Streak-Continues&bvt=rss">John MartinThu, 26 Sep 2013 13:05:00 GMTf1397696-738c-4295-afcd-943feb885714:67567http://www.hqworksforme.com/mortgage-blog/bid/67435/Mortgage-Rates-Much-Lower-Today-After-Fed-Meeting#Comments0Mortgage Rates Much Lower Today After Fed Meetinghttp://www.hqworksforme.com/mortgage-blog/bid/67435/Mortgage-Rates-Much-Lower-Today-After-Fed-Meeting<p>On Wednesday, the Fed announced they would&nbsp;"hold-off" tapering the Quantitative Easing plan&nbsp;and continue to purchase mortgage backed securities.&nbsp; As a result, the market surged on the good news, <strong>causing interest rates to improve by nearly .250% to their lowest in 4 months.</strong></p>
<p>The Fed only meets 8 times a year and only 4 of those meetings boast the full slate of events that include updated economic projections from Fed governors and the press conference with the Fed Chairman.&nbsp; While every meeting ends with a policy announcement, the specific task of adjusting asset purchases is seen as coinciding with one of the meetings where the Chairman can further discuss the decision in the press conference.</p>
<p>When the Fed abstained from cutting asset purchases in the June meeting, markets generally accepted that today's meeting would be the most likely opportunity to announce&nbsp;a plan to cease the purchase program.&nbsp; Not everyone agreed.&nbsp; Detractors cited early warning signs that the economy wouldn't grow as quickly as the Fed expected (if at all) in light of interest rates that had risen "too fast."&nbsp; That logic notwithstanding, fears remained that the Fed wouldn't have enough hard evidence to make the same determination, and today remained the consensus for a tapering announcement.</p>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/67435/Mortgage-Rates-Much-Lower-Today-After-Fed-Meeting&bvt=rss">John MartinThu, 19 Sep 2013 13:03:00 GMTf1397696-738c-4295-afcd-943feb885714:67435http://www.hqworksforme.com/mortgage-blog/bid/67414/Mortgage-Rates-at-September-s-Best-Levels#Comments1Mortgage Rates at September's Best Levelshttp://www.hqworksforme.com/mortgage-blog/bid/67414/Mortgage-Rates-at-September-s-Best-Levels<p><b><a href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</a></b> <b>improved again today, </b>bringing them to their best levels of month, just on par with rate sheets from late August.&nbsp; Conforming, 30yr Fixed rates held at <b>4.500%</b> in some cases with the improvement being more readily seen in the form of lower closing costs.&nbsp; In others, the the most efficient combination of upfront cost and monthly payment <b>(<b><a href="http://www.mortgagenewsdaily.com/consumer_rates/259880.aspx">best-execution</a></b>) </b>fell to <b>4.375%.</b></p>
<p>The Federal Reserve is <b>very much in focus</b> for several reasons.&nbsp; Of course the upcoming meeting and announcement on Wednesday have been in focus for several months as they've increasingly become the most likely venue for the Fed to signal a reduction in asset purchases (aka "tapering").&nbsp; Wednesday remains important for that reason, but also because the text of the announcement, the press conference with the Chairman and the staff economic projections will help build the market's sense of how the Fed will handle itself as the tapering process (assuming it's announced) continues to unfold.</p>
<p>These things are important to mortgage rates because the nature of Fed policy with respect to those asset purchases has a <b>direct effect</b> on the mortgage-backed-securities (MBS) that underpin the world of mortgage rates not to mention the general effect on economic and market momentum.&nbsp; In other words, sentiment surrounding Fed policy can move "bond markets" in general and specific decisions regarding MBS purchases can have an additional positive or negative effect on <b>Mortgage Rates</b> specifically.&nbsp;</p>
<p>Even outside the realm of policy adjustments, the Fed is a market moving consideration.&nbsp; Today, for instance, the fact that <b>Larry Summers</b> withdrew from consideration as the next Fed Chair gave both sides of the market (stocks and bonds) a boost.&nbsp; This happened because Summers was seen as more likely to dial back the accommodation whereas the remaining frontrunner Janet Yellen is seen more like Bernanke.&nbsp; Fears of decreased accommodation under Summers have perhaps been a slight drag on prices of Stocks and Bonds.&nbsp; When bond prices fall, rates rise.&nbsp;</p>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/67414/Mortgage-Rates-at-September-s-Best-Levels&bvt=rss">John MartinWed, 18 Sep 2013 14:44:00 GMTf1397696-738c-4295-afcd-943feb885714:67414http://www.hqworksforme.com/mortgage-blog/bid/63005/Massachusetts-Mortgage-Rates-moved-lower#Comments0Massachusetts Mortgage Rates moved lowerhttp://www.hqworksforme.com/mortgage-blog/bid/63005/Massachusetts-Mortgage-Rates-moved-lower<UL>
<LI>Massachusetts <A href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</A><STRONG> moved slightly lower this afternoon</STRONG> after beginning the day in line with yesterday's worst levels of the year. Things looked relatively bleak as domestic market participants were greeted with flat trading levels vs Wednesday's late day weakness and stronger economic data in the morning that, at first, threatened to take rates even higher. But bond markets, including MBS (the mortgage-backed-securities that most directly affect mortgage rates) were able to hold their ground long enough to make it to the 1pm 30yr Treasury Auction, which helped rates move lower into the afternoon. Best-Execution for 30yr Fixed, Conventional loans remains at 3.625%, with ongoing stratification between lenders due to recent volatility.</LI></UL>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/63005/Massachusetts-Mortgage-Rates-moved-lower&bvt=rss">John MartinThu, 14 Feb 2013 22:00:00 GMTf1397696-738c-4295-afcd-943feb885714:63005http://www.hqworksforme.com/mortgage-blog/bid/62673/30-Year-Rates-bump-higher#Comments030 Year Rates bump higherhttp://www.hqworksforme.com/mortgage-blog/bid/62673/30-Year-Rates-bump-higher<A href="http://www.mortgagenewsdaily.com/mortgage_rates/">Mortgage rates</A><STRONG> began the day much improved</STRONG> compared to Monday's latest offerings, but the gains mostly evaporated by the end of the session. The mortgage-backed-securities (MBS) that most directly affect rates, had been steadily improving since sustaining major damage from Friday through Monday morning. Those improvements carried through to this morning's rate sheet print times, but trading levels began to deteriorate shortly thereafter. Stock prices and Treasury yields rose. MBS fell (falling prices mean rising rates), and throughout the course of the day, most lenders recalled rate sheets for negative reprices. The result is a 30yr Fixed Best-Execution level that remains at 3.625% with a few lenders still marginally lower in costs vs yesterday.
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/62673/30-Year-Rates-bump-higher&bvt=rss">John MartinWed, 30 Jan 2013 17:10:00 GMTf1397696-738c-4295-afcd-943feb885714:62673http://www.hqworksforme.com/mortgage-blog/bid/11827/10-Days-Left-Fed-s-1-25Trillion-MBS-Purchase-Program-comes-to-an-end#Comments110 Days Left- Fed's $1.25Trillion MBS Purchase Program comes to an end.http://www.hqworksforme.com/mortgage-blog/bid/11827/10-Days-Left-Fed-s-1-25Trillion-MBS-Purchase-Program-comes-to-an-end<P>There are only 10 calendar days remaining in the Fed's MBS Purchase Program, as it is scheduled to end on March 31st.&nbsp; What does this mean for interest rates?</P>
<P>The program was implemented in January 2009 to help add some liquidity&nbsp;to the secondary&nbsp;lending market.&nbsp;The goal of the program&nbsp;was to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally.&nbsp; At the time, mortgage lending was&nbsp;risky and investers were hesitant to buy mortgage backed securities (MBS) and hold them in their portfolios.&nbsp; The Fed&nbsp;stepped in and agreed to buy/back $1.250 trillion of MBS, under the supervision of the FOMC. As a result, the secondary market&nbsp;received a much needed boost from&nbsp;the Fed&nbsp;and the refi-boom was again in full force as interest rates hit historical lows.&nbsp;</P>
<P mce_keep="true">What happens now?&nbsp; Well, many investors and analysts&nbsp;are predicting that interest rates will start to trend upwards after the 31st, as anxiety will hit the marketplace.&nbsp; Interest rates are not expected to sky rocket, but some analyst&nbsp;have forecasted rates to hit 5.500% by early May 2010.</P>
<P mce_keep="true">In the meantime, 30YR fixed interest rates remian at 4.875% to start the week of March 22, 2010.&nbsp; We at HomeQuest urge anyone seeking home financing needs to act now, while the interest rates remain at historical lows.</P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/11827/10-Days-Left-Fed-s-1-25Trillion-MBS-Purchase-Program-comes-to-an-end&bvt=rss">John MartinMon, 22 Mar 2010 15:58:00 GMTf1397696-738c-4295-afcd-943feb885714:11827http://www.hqworksforme.com/mortgage-blog/bid/11643/Mortgage-Market-Update-30YR-Fixed-at-4-875#Comments0Mortgage Market Update - 30YR Fixed at 4.875%http://www.hqworksforme.com/mortgage-blog/bid/11643/Mortgage-Market-Update-30YR-Fixed-at-4-875Mortgage bond prices rose nicely on Thursday, pushing mortgage backed security yields to their lowest levels in nearly three weeks following soft economic data. As a result, 30YR Fixed interest rates remain at 4.875% to end the week.&nbsp; While Labor Department officials surmised that the rise in jobless claims was a result of delayed reporting from the prior week, the claims have definitely drifted higher following what now appears to have been an overstated plunge in December/January. This morning, bond prices are mixed and have shown little reaction to the second report of Q4 GDP. Growth was revised higher, to 5.9% from 5.7% for the quarter, but personal consumption was revised lower, to 1.7% from 2.0%. Later today, we will receive the U of M's final February consumer confidence index as well as January's existing home sales data. With existing home sales now representing about 90% of all sales, it's about the only housing data (other than valuations) that matters.
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/11643/Mortgage-Market-Update-30YR-Fixed-at-4-875&bvt=rss">John MartinFri, 26 Feb 2010 14:23:00 GMTf1397696-738c-4295-afcd-943feb885714:11643http://www.hqworksforme.com/mortgage-blog/bid/11470/Mortgage-Rates-Massachusetts#Comments0Mortgage Rates Massachusettshttp://www.hqworksforme.com/mortgage-blog/bid/11470/Mortgage-Rates-Massachusetts<P>Mortgage rates in Massachusetts&nbsp;remianed&nbsp;quite steady to start the week,&nbsp;despite a&nbsp;recent rally in the&nbsp;equities market.&nbsp;The Obama Administration recently released&nbsp;their 2011 Budget/Forecast, providing analyst with a plethora of data to scrutinize.&nbsp;What does this mean for mortgage rates? Well, the&nbsp;budget calls for $1.6 trillion in deficit spending next year,&nbsp;thus placing a strain on Treasury auctions needed to eventually pay-off the debt, thus placing a burden on the&nbsp;yields (%)&nbsp;for mortgage backed securities. Should yields on mortgage backed securities (MBS) rise,&nbsp;a rise&nbsp;on interest rates will surely follow to offset the&nbsp;MBS yield pay-outs to investors.&nbsp;&nbsp;Furthermore,&nbsp;should the Federal Reserve&nbsp;continue&nbsp;its'&nbsp;plan to cease&nbsp;purchasing mortgage backed securities at the end of&nbsp;March 2010,&nbsp;mortgage rates will most certainly rise from the&nbsp;historic levels we've been&nbsp;celebrating for the past 12 months. This is one major reason&nbsp;HomeQuest Mortgage professionals are urging consumers to act now and avoid missing the opportunities in today's marketplace.</P>
<P>The Pending Home Sales report&nbsp;will&nbsp;hit the news wires today&nbsp;to provide us with some insight to the&nbsp;recent trends in the housing market.&nbsp;&nbsp; The National Association of Realtors releases the report, which shows the monthly change in the amount of existing homes&nbsp;(excluding new construction) in which a&nbsp;purchase &amp; sale contract has been signed,&nbsp;however pending a closing date.&nbsp;&nbsp;Pending Home Sales&nbsp;is a leading indicator of the housing activity and economic momentum, as&nbsp;it&nbsp;provides supplemental evidence of consumer confidence.&nbsp;&nbsp;In addition,&nbsp;home&nbsp;purchases stimulate the economy in other retail merchandising, as there are many other&nbsp;housing fixtures&nbsp;needed to complete the furnishing of the home.&nbsp;&nbsp; The data in this report has a two month lag time, so today's data is for the prior month of December 09.&nbsp; </P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/11470/Mortgage-Rates-Massachusetts&bvt=rss">John MartinWed, 03 Feb 2010 14:51:00 GMTf1397696-738c-4295-afcd-943feb885714:11470http://www.hqworksforme.com/mortgage-blog/bid/11020/Massachusetts-mortgage-rates#Comments2Massachusetts mortgage rates...http://www.hqworksforme.com/mortgage-blog/bid/11020/Massachusetts-mortgage-rates<P>Massachusetts mortgage rates&nbsp;closed the month of November&nbsp;at a near 52 week low,&nbsp;causing new loan originations at many&nbsp;brokerage firms&nbsp;to soar.&nbsp; Many&nbsp;homeowners&nbsp;decided to take&nbsp;advantage of the opportunity&nbsp;and were able to lock-in at&nbsp;historically low interest rates.&nbsp; On November 27th, mortgage&nbsp;backed securities (MBS: FNMA 30YR 4.50%) traded at their highest price since January 7, 2009, driving 30 Year Fixed rates down to 4.625%.&nbsp; The national 30 year fixed rate mortgage averaged 4.71% for the week ending Dec. 3rd...the lowest&nbsp;average since Freddie Mac began its weekly survey in 1971.&nbsp;To benchmark, Massachusetts mortgage rates&nbsp;are down from 4.78% last week and 5.53% a year ago.&nbsp; Those tracking&nbsp;rates&nbsp;may recall&nbsp;mortgage rates&nbsp;around 6.00% this past summer.&nbsp; </P>
<P>In general, bond prices and&nbsp;bond yields&nbsp;share an inverse relationship...when&nbsp;mortgage backed securities are in high demand,&nbsp;MBS prices increase and&nbsp;yields decline.&nbsp; When bond yields decline, mortgage rates typically decrease.&nbsp; Bonds are a safe-haven for financial investors looking&nbsp;for an&nbsp;alternative to the risky equity markets.&nbsp;&nbsp;Last week,&nbsp;Fed Chairman Ben Bernanke&nbsp;announced that the recovery would not be an easy one, inflation will remain low and that rates will remain low for an extended period of time.&nbsp; As a result, the mortgage backed securities experienced a substantial sell-off, causing prices to drop and mortgage rates to increase .125-.250% by week ending Friday December 4th.</P>
<P mce_keep="true">In summary, I encourage&nbsp;anyone pondering the thought of refinancing to act&nbsp;now and take advantage of the all-time low rates...don't attempt to time the market!&nbsp; Many homeowners&nbsp;are hesitant to pull the trigger in hopes of obtaining a lower rate and end up missing the opportunity.&nbsp; Often times, the media/publications can&nbsp;confuse&nbsp;borrowers.&nbsp;Rate shoppers&nbsp;become frustrated&nbsp;when they call their mortgage broker inquiring about&nbsp;current rates to find out the rates are different then what they're reading online or in the newspaper.&nbsp; It's important that&nbsp;shoppers understand&nbsp;mortgage backed securities are indeed "securities" that trade in "real time" and are subject to change hourly due to market volatility.&nbsp; Many online advertising websites&nbsp;are updated 3-4 times daily, however it is too cumbersome a project to&nbsp;modify&nbsp;websites an a minute-by-minute basis.&nbsp;&nbsp;Newspaper rates are typically due the Wednesday before the Sunday publication, thus mortgage rates are nearly 4 days out-dated by the time shoppers are reading the mortgage grids.</P>
<P mce_keep="true">Lastly, Fannie Mae announced it will be tightening their lending guidelines on December 12th...no doubt causing headaches for borrowers looking to obtain&nbsp;financing.</P>
<P mce_keep="true">HomeQuest Mortgage offers a FREE Rate Alert program&nbsp;to assist our customers.&nbsp; Simply tell us what rate you desire and our team of analyst will contact you once&nbsp;your target rate&nbsp;is available.&nbsp; To learn more, visit <A href="http://www.hqworksforme.com/" mce_href="http://www.hqworksforme.com/">www.HQWorksForMe.com</A>.&nbsp;</P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/11020/Massachusetts-mortgage-rates&bvt=rss">John MartinTue, 08 Dec 2009 03:02:00 GMTf1397696-738c-4295-afcd-943feb885714:11020http://www.hqworksforme.com/mortgage-blog/bid/10963/Fannie-Mae-guidelines-to-tighten-December-12th#Comments0Fannie Mae guidelines to tighten December 12thhttp://www.hqworksforme.com/mortgage-blog/bid/10963/Fannie-Mae-guidelines-to-tighten-December-12th<P>The mortgage lending guidelines will tighten once again on December 12, 2009 making it more difficult for some borrowers to obtain a purchase loan or refinance their existing mortgage.</P>
<P>Fannie Mae announced it will limit the maximum debt-to-income ratio to 45% of a borrower's gross income.&nbsp; Previously, a borrower could qualify up to 50-55% debt ratios.&nbsp; Fannie Mae did mention that they will consider debt-ratios up to 50% assuming the borrower can provide "strong compensating factors".&nbsp; This would include high credit scores, low loan-to-values (LTV's) and/or significant cash reserves.</P>
<P>In addition to debt ratios, Fannie Mae will also require a minimum credit score of 620, previously the minimum was 580.&nbsp; Fannie Mae believes raising the minimum credit scores and tightening the debt ratios will support prudent risk management and better ensure sustainable homeownership.&nbsp; One can&nbsp;argue that this is an effort to crackdown on the loose lending standards that led to the mortgage crisis that started in 2008.&nbsp; Industry professionals are concerned the new requirements may offset the initiatives introduced by the government to provide more liquidity in the secondary lending market.</P>
<P>Current mortgage rates are at an all-time low right now, so act now and avoid these stringent guidelines.&nbsp; Please call&nbsp;a HomeQuest Mortgage representative for more details at 866-839-1117.</P>
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<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/10963/Fannie-Mae-guidelines-to-tighten-December-12th&bvt=rss">John MartinTue, 01 Dec 2009 15:43:00 GMTf1397696-738c-4295-afcd-943feb885714:10963http://www.hqworksforme.com/mortgage-blog/bid/10943/Current-Mortgage-Rates-Hit-Fresh-All-Time-Low#Comments0Current Mortgage Rates Hit Fresh All-Time Lowhttp://www.hqworksforme.com/mortgage-blog/bid/10943/Current-Mortgage-Rates-Hit-Fresh-All-Time-Low<P mce_keep="true">Mortgage interest rates are currently at the lowest levels of all time surpassing the best levels from January of this year.&nbsp;&nbsp; The new run lower in mortgage rates has been spurred on by tightening spreads between mortgage backed securities and US treasury debt.&nbsp;&nbsp; The Federal Reserve still has money left in their program to keep mortgage rates low but they have begun to wind it down. </P>
<P>Mortgage rates are at all time lows across the board from 30 year fixed rates to 20, 15 and 10 year fixed all the way to 5/1 and 7/1 adjustable rate loans.&nbsp; </P>
<P>Other good news in the mortgage market to go along with all time low interest rates is the announcement of the first time homebuyer tax credit being extended into next year.&nbsp; Also, the expanded conforming jumbo loan limits will also be carried over into next year.&nbsp; Both of these programs were originally going to expire in 2009.&nbsp; This helps open up the guidelines and allow more borrowers to take advantage of the low mortgage interest rates that are available.&nbsp;&nbsp; &nbsp;&nbsp;</P>
<P>The big current event that is impacting both the mortgage market and the equity markets today is news out of Dubai that Dubai World, the city-state's largest corporate entity, has asked it's creditors for a 6 month break on payments of $60 billion (60,000,000,000) in debts.&nbsp;&nbsp; This has caused concern that the worst of the financial crisis might not be over.&nbsp;&nbsp; Yields on US treasuries have moved lower this morning as stocks have been declining.&nbsp;&nbsp; US treasuries are used as a benchmark for Mortgage Backed Securities which have also seen their yields dropping (leads to lower mortgage rates) this morning.&nbsp;&nbsp; </P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/10943/Current-Mortgage-Rates-Hit-Fresh-All-Time-Low&bvt=rss">Jason EvansFri, 27 Nov 2009 15:26:00 GMTf1397696-738c-4295-afcd-943feb885714:10943http://www.hqworksforme.com/mortgage-blog/bid/10308/Current-Mortgage-Rates-Plummet-to-Lowest-Levels-since-May#Comments1Current Mortgage Rates Plummet to Lowest Levels since Mayhttp://www.hqworksforme.com/mortgage-blog/bid/10308/Current-Mortgage-Rates-Plummet-to-Lowest-Levels-since-May&nbsp;
<P>Mortgage interest rates have been falling over the past month back to the best levels of the year.&nbsp;&nbsp; This drop in mortgage rates has happened despite a strong rally in the stock market.&nbsp; Usually when stocks rally, mortgage rates get worse.&nbsp;&nbsp; </P>
<P>Many analysts think that the stock market is overbought and will sell off soon.&nbsp; If that were to happen then we could see mortgage rates move even lower.&nbsp;&nbsp; One thing working against mortgage rates is the Federal Reserve beginning to wind down their purchase of Mortgage Backed Securities (MBS).&nbsp; This program was started at the beginning of the year in an effort to tighten the spread on MBS and bring mortgage rates down.&nbsp;&nbsp; Originally the Fed was going to use $1.25 trillion dollars to buy mortgage backed securities by the end of this year.&nbsp; On Wednesday the Fed announced that instead of spending all $1.25 trillion by the end of this year, they would be slowing their daily purchases of MBS so that the funds are not gone until the end of March 2010.&nbsp; As the Fed buys less MBS each day in order to make the $1.25 trillion last longer and gradually exit the market, mortgage rates could begin to go up.&nbsp;&nbsp; </P>
<P>It is always hard to predict where mortgage rates are headed.&nbsp; In the current times it is even more difficult because of the unprecedented Fed involvement and the uncertainty about how much rates will increase up when the Fed exits the market.&nbsp; </P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/10308/Current-Mortgage-Rates-Plummet-to-Lowest-Levels-since-May&bvt=rss">Jason EvansFri, 25 Sep 2009 19:17:00 GMTf1397696-738c-4295-afcd-943feb885714:10308http://www.hqworksforme.com/mortgage-blog/bid/8101/Details-on-the-Making-Home-Affordable-Program#Comments5Details on the "Making Home Affordable Program" http://www.hqworksforme.com/mortgage-blog/bid/8101/Details-on-the-Making-Home-Affordable-Program<P>The Obama Administration unveiled the final details of its <STRONG>"Making Home Affordable Program,"</STRONG> which is designed to help up to 9 million American families refinance or modify their loans to a payment that is affordable now and into the future. One of the initiatives in this program is aimed at helping responsible homeowners <STRONG>"refinance"</STRONG> their loans to take advantage of historically low interest rates. Here are some common Questions and Answers about the Refinancing Initiative in the program. </P>
<P><STRONG>Am I required to pay PMI if I have less than 20% equity in my home?</STRONG> If your original loan&nbsp;had&nbsp;20% equity&nbsp;and/or you <U>do not</U> currently pay PMI, then you <U>are not</U> required to obtain PMI under the new refinance initiative.&nbsp; In other words, you are eligible to refinance up to 105% of the value of your home and not be required to pay monthly PMI payments.&nbsp; If your current mortgage has PMI or was at 80% or greater than the value of the home, then you will still be required to pay PMI. This initiative provides a solution for borrowers with LTV's above 80% who currently may not be able to refinance because of mortgage insurance (PMI) requirements.</P>
<P><STRONG>REFINANCING INITIATIVE</STRONG> <STRONG>Who is eligible?</STRONG> You may be eligible if: You own and currently occupy a one- to four-unit home. Your mortgage is owned or controlled by Fannie Mae or Freddie Mac. You are current on your mortgage payments. The amount you owe on your first mortgage is about the same or slightly less than the current value of your house. And, you have a stable income sufficient to support the new mortgage payments. </P>
<P><STRONG>How do I know if my loan is owned or controlled by Fannie Mae or Freddie Mac?</STRONG> Simply call or email us. We'll help you determine if your mortgage is backed by Fannie Mae or Freddie Mac. </P>
<P><STRONG>I owe more than my property is worth. Do I still qualify to refinance under the Making Home Affordable Program?</STRONG> Eligible loans will include those where the first mortgage will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less, you may qualify. The current value of your property will be determined after you apply to refinance. </P>
<P><STRONG>If I am delinquent on my mortgage, do I still qualify for the Refinance Initiative? </STRONG>No. But the good news is, you may qualify for the Modification Initiative. Contact&nbsp;us to discuss your situation and review your options. </P>
<P><STRONG>I have both a first and a second mortgage. Do I still qualify to refinance under Making Home Affordable?</STRONG> As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible for the Refinance Initiative. </P>
<P><STRONG>Will refinancing lower my payments?</STRONG> That depends. If your interest rate is much higher than the current market rate, you would likely see an immediate reduction in your payment amount. However, if you are paying interest only on your mortgage, you may not see your payment go down. BUT... you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan. </P>
<P><STRONG>Will refinancing reduce the amount that I owe on my loan?</STRONG> No. Refinancing will not reduce the principal amount you owe. However, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan. </P>
<P><STRONG>Can I get cash out to pay other debts? </STRONG>No. Only transaction costs, such as the cost of an appraisal or title report may be included in the refinanced amount. </P>
<P><STRONG>How do I apply for the Refinance Initiative?</STRONG> Call or email&nbsp;us today to discuss your specific situation and to examine your options. If this plan is right for you, we can begin working on your refinance immediately. As part of the discussion, we may need to look at the following information: Recent pay stubs to help determine your gross (before tax) household income. Your most recent income tax return. Information about any second mortgage on your house. Account balances and minimum monthly payments due on all of your credit cards. Account balances and monthly payments on all other debts, such as student loans and car loans. </P>
<P>As always, if you have any questions or would like to discuss how this may specifically impact you, we'd be happy to sit down with you. Just call or email&nbsp;us to set up an appointment. </P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/8101/Details-on-the-Making-Home-Affordable-Program&bvt=rss">John MartinThu, 05 Mar 2009 15:39:00 GMTf1397696-738c-4295-afcd-943feb885714:8101http://www.hqworksforme.com/mortgage-blog/bid/8006/Stimulus-Plan-Explained#Comments0Stimulus Plan Explainedhttp://www.hqworksforme.com/mortgage-blog/bid/8006/Stimulus-Plan-Explained<STRONG>Tax Credit for Homebuyers<BR></STRONG>First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.&nbsp;Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
<P>The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.&nbsp;Buyers will have to repay the credit if they sell their homes within three years.</P>
<P><STRONG>Tax Credit Versus Tax Deduction</STRONG></P>
<P>It's important to remember that the $8,000 tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing. <BR><BR>Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit... and still receive a check for the remaining $4,000!</P>Phaseout Examples
<P>According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.<BR><BR>To break down what this phaseout means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:<BR><BR><STRONG><EM>Example 1:</EM></STRONG> Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.<BR><BR><STRONG><EM>Example 2: </EM></STRONG>Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.<BR><BR>Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.</P><STRONG>Homes that Qualify</STRONG><BR>
<P>The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.</P><BR><STRONG>Higher Loan Amounts</STRONG>
<P>More good news - there is an extension on the additional tier of conforming loan amounts which had been first established in 2008.&nbsp; This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750.&nbsp; These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard "jumbo" loan rates.</P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/8006/Stimulus-Plan-Explained&bvt=rss">John MartinTue, 24 Feb 2009 18:35:00 GMTf1397696-738c-4295-afcd-943feb885714:8006http://www.hqworksforme.com/mortgage-blog/bid/7726/Mortgage-Rates-Start-To-Increase#Comments0Mortgage Rates Start To Increasehttp://www.hqworksforme.com/mortgage-blog/bid/7726/Mortgage-Rates-Start-To-Increase<P mce_keep="true">&nbsp;</P>
<P>Mortgage interest rates have begun to come off the all time lows from early January and seem to have settled in the low 5% range on 30 year fixed mortgages with no points.&nbsp; One of the reasons that rates have begun to increase is all of the planned stimulus packages and spending that newly elected President Obama has on the table.&nbsp;&nbsp; The way these packages will be financed is through increased government borrowing in the form of increased supply of treasury notes.&nbsp;&nbsp;&nbsp;This expectation of increased supply in the bond market has lead to higher yields in all bond markets and caused mortgage backed securities (MBS) to follow with higher yields as well.&nbsp;&nbsp; Along with increased supply pulling the price of bonds down and thus increasing the yield; there is fear among investors that inflation will eventually pick up if the stimulus packages spark an economic recovery.&nbsp;&nbsp; </P>
<P>The Fed is going forward with their program of purchasing MBS on the open market.&nbsp; They have consistently been buying 3 to 4 billion of agency MBS each day.&nbsp;&nbsp; If it were not for this constant demand provided by the Fed, mortgage rates would be much higher than they are today.&nbsp; </P>
<P>On the bright side, as lenders get caught up on loans in their pipeline over the next month they should get more aggressive in the rates they offer on their daily rate sheets in an effort to keep the new loans coming in.&nbsp; This tightening of the spread between lenders rate sheets and MBS pricing could lead to lower rates again sometime in the next month.&nbsp;&nbsp; </P>
<P>While 30 year rates in the high 4% range were nice while they lasted, rates in the low 5% range are nothing to complain about either, especially with the home purchase season fast approaching.&nbsp; </P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/7726/Mortgage-Rates-Start-To-Increase&bvt=rss">Jason EvansTue, 03 Feb 2009 14:54:00 GMTf1397696-738c-4295-afcd-943feb885714:7726http://www.hqworksforme.com/mortgage-blog/bid/7403/More-bad-news-for-economy-but-good-news-for-mortgage-rates#Comments0More bad news for economy but good news for mortgage rateshttp://www.hqworksforme.com/mortgage-blog/bid/7403/More-bad-news-for-economy-but-good-news-for-mortgage-rates<P mce_keep="true">The monthly unemployment report was released today and the results were worse than expected. &nbsp;In total it is estimated that 524,000 jobs were lost in December.&nbsp; Economists were expecting job losses to be closer to 500,000 for December.&nbsp; On top of that the numbers for October and November were also revised to show larger losses than were first reported.&nbsp;&nbsp; The unemployment rate has jumped up to 7.2% which is the highest it has been in 16 years.&nbsp;&nbsp; </P>
<P>One bright spot in all of this bad news is that mortgage rates remain at all time lows.&nbsp; This should help a lot of borrowers to free up some money by refinancing their mortgage into lower monthly payments.&nbsp; </P>
<P>Another factor keeping mortgage rates at these historic levels is the fact that the Federal Reserve has begun their program of purchasing Agency Mortgage Backed Securities in an effort to keep rates low.&nbsp; So far it has worked as rates have been available in the 4s at times this week.&nbsp;&nbsp; &nbsp;&nbsp; </P>
<img src="http://track.hubspot.com/__ptq.gif?a=11131&k=14&bu=http://www.hqworksforme.com/mortgage-blog/&r=http://www.hqworksforme.com/mortgage-blog/bid/7403/More-bad-news-for-economy-but-good-news-for-mortgage-rates&bvt=rss">Jason EvansFri, 09 Jan 2009 16:54:00 GMTf1397696-738c-4295-afcd-943feb885714:7403